Understanding Michigan’s No-Fault System For a Car Crash

Posted on behalf of Jay Trucks & Associates, PC on May 15, 2020 in Auto Accidents

Michigan’s no-fault insurance system has been around for about 50 years, and it was implemented to help reduce the number of lawsuits in the state. Following the changes taking effect under Michigan's new No-Fault Auto Insurance Reform, many policyholders may be confused about what to expect from their coverage under the new law.

Our attorneys at Jay Trucks & Associates explain more about this no-fault system in user-friendly terms, including who pays after an accident, what benefits you can expect, and how to access the compensation you need.

If you were injured in a Michigan car crash, we recommend that you consider seeking legal help for your potential claim soon after your accident. Our trusted lawyers have extensive knowledge of Michigan’s no-fault insurance system and how these laws may apply following a car accident.

We are prepared to review the circumstances and contributing factors of your car crash and help you understand your legal options in a completely free consultation. Following this no-obligation meeting, if you have a case and decide to retain our services, you can do so with zero out-of-pocket costs. We charge nothing to you unless we first obtain compensation on your behalf.

Who Pays For What and When in a Michigan Car Crash?

If you suffered injuries in a car accident, Michigan’s no-fault insurance system provides personal injury protection (PIP) and other benefits, even if you were at fault for the accident. The no-fault benefits you may receive include :

PIP Provision for Medical Expenses

The medical benefits that are covered by your PIP insurance could include the following (up to your policy limits):

In-patient hospital stays

Surgical interventions

Prescribed medications

Ambulatory care

Physical Therapy

Rehabilitation Services

Diagnostic testing

Cost of traveling to doctor appointments

PIP Compensation For Certain Economic Damages:

Other benefits you can expect from your PIP coverage includes the compensation of some economic damages, including:

Replacement services – If eligible, you may receive up to $20 per day to help you manage household tasks, such as lawn care, laundry or housekeeping tasks that your injuries prevent you from doing on your own.

Lost wages – PIP provides up to 85 percent of the income you were making at your regular job (or up to the maximum allowed weekly benefit of $5,398), whichever is less, for a maximum of three years.

PIP Death Benefits Expenses

When a policyholder suffers death in a Michigan car crash, PIP benefits will pay for his or her funeral and burial expenses. Beneficiaries of a deceased victim are also eligible for the wage loss benefits that the victim would have received if he or she had survived.

Personal Property Insurance (PPI)

The PPI portion of your no-fault insurance benefits covers the cost of any damages your car did to any other property, such as a shop window, perimeter fence or storage shed. It also covers the damages your car may have caused to a parked car. It does not provide any compensation for the repair of other vehicles involved in the crash or your own car.

How to Claim Your Benefits

After a car accident, you have up to one year from the date of your accident to file a PIP claim with your insurance company. If you miss the deadline, you will not get your benefits.

There are different types of documentation that you will need to file with your insurer to get benefits, including:

Request for PIP benefits form

Doctor’s note detailing the type and extent of your injuries

A form requesting compensation for lost wages (if applicable)

Your insurance provider is not obligated to pay you any benefits until you submit this documentation. However, once you have provided this information, your insurer has 30 days to begin payments and can be charged interest on arrears for non-compliance.

What If You Are At-Fault?

Liability is not applicable when filing a no-fault insurance claim. Your PIP and other benefits will apply regardless of who may have caused the accident. However, you should review your policy or check with your insurance provider to see if you have to pay a PIP deductible.

Who Pays Medical If Your PIP Runs Out

Michigan follows a revised order of priority following the implementation of the new Auto Insurance Reform. The new priority for obtaining no-fault insurance benefits is as follows:

Insured (self)

Spouse (if applicable)

Resident relative

Michigan Assigned Claims Plan (MACP) – Under the new law, the MACP will provide up to $250,000.

Contact a Reputable Lawyer For Legal Help With Your Claim

At Jay Trucks & Associates, we are prepared to provide the legal help you need. Our knowledgeable Clare car accident attorneys can discuss your potential legal options for compensation, including whether you may have grounds for a personal injury lawsuit, in a completely free consultation. We charge nothing up front and collect no attorney's fees unless we first obtain a recovery on your behalf.

Todd and his office staff were very responsive. They kept me informed about what was happening with my case. Todd was very personable and made me feel as if I were his first priority. I would recommend him to represent anyone. Thank you Todd and Liz!

Michelle Johnson

Jason and Liz are awesome! They helped settle my workmans comp case in a timely and professional manner. There were time's when I wanted to give up and throw in the towel .I would get frustrated with workmans comp and all the games they pull on you. Jason was always there to help with words of encouragement and explanation as to what things ment and what's going to happen next .Also kept me on track of my responsibilities . I had an injury to my right rotator cuff at work .After having one surgery I had too have another for a frozen shoulder. Nothing but problems trying to work with workmans comp I hired Jason at Jay Trucks & Associates I highly recommend them. Today my settlement was finalized for a (very generous amount ). Thank you Jason!!! Thank you Liz for always being there when I called. Thank you Jay Trucks & Associates!!!

Lynn Allbee

Nicest people very caring and easy to have contact with.A very Professional!

Shar Landis

I thank you all for taking my case working with me for over 3 years Jason did an awesome job so did his associates You always kept me in the loop of what was going on I would have to say you guys are as good as what you guys do and you do it with your best ability and what you have to work with greatly appreciated God bless all

LBJ 13

I had an easy experience. I could call
Jayson anytime or he would call me right away. He kept me up to date with any and all information, in a timely manner. My settlement went smoothly. I would definitely refer my family and friends to Jay Trucks.